Operate a bank at your own risk in Illinois, a state where unions dictate and politicians pander. Giannoulias, an Obama basketball buddy, has already indicated that he will challenge Roland Burris in the Democratic primary for Senator next year.
Illinois Treasurer Alexi Giannoulias threatens to pull state money from Wells Fargo if Hartmax factory is shut down
The Chicago-based manufacturer, which makes suits for President Barack Obama, is in talks to be sold soon.
By Sandra M. Jones | Tribune staff reporter
2:22 PM CDT, May 7, 2009
State Treasurer Alexi Giannoulias (center) talks with cutting room steward, Wally Kuzmyn (right), as Giannoulias takes a tour of the company in Des Plaines. Working in the foreground is Ji Huang. (Tribune photo by Stacey Wescott / May 7, 2009)
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The fight to keep the Hartmax Corp. suit factory in Des Plaines alive stepped up Thursday when the state treasurer threatened to pull Illinois' business from Wells Fargo & Co. if the bank backs a bid that could lead to liquidating the company.
"Unless the company remains open, they will not be doing business with the state of Illinois any longer," Illinois Treasurer Alexi Giannoulias told a crowd of workers outside the factory, who gathered on their lunch break.
The Chicago-based manufacturer, which makes suits for President Barack Obama, filed for Chapter 11 bankruptcy Jan. 23 and is in talks to be sold soon. The Des Plaines factory, opened in 1982, employs 600 workers making men's suit coats. Hartmarx also has a union factory in Rock Island where it employs 300 workers.
Backdropped by signs saying "Wells Fargo gets bailed out workers get sold out," union leaders said they worry that a new owner would close the factory and liquidate the company or send production overseas. They say the bank has an obligation to protect jobs in light of the $25 billion it received in federal TARP bailout money.
"Wells Fargo has to understand that if they take a short-term approach they're creating the same problem that got us into this mess," said Tom Balanoff, president Service Employees International Union state council.
Giannouliaus said he sent a letter to Wells Fargo's president and CEO John Stumpf warning that the relationship with the state in "serious jeopardy."
Wells Fargo is the custodian for the $8 billion Illinois state portfolio, according to Scott Burnham, spokesman for the Illinois Treasurer's office.
Wells Fargo, for its part, said it wants Hartmarx to stay in business.
"We empathize with the employees and communities affected by decisions made by Hartmarx," said Wells Fargo spokesman Jessica Walstrom in a prepared statement. "However, these are internal business matters that Hartmarx is deciding on, as Hartmarx explores its options in the bankruptcy process.
"Beyond that, we cannot comment further because our customer relationships are confidential."
The largest maker of men's tailored clothing in the U.S. traces its roots to 1872, when brothers Harry and Max Hart opened a men's clothing store in Chicago.
smjones@tribune.com
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